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Restructuring · Sub-expertise

Ad hoc mandate (mandat ad hoc).

The ad hoc mandate (mandat ad hoc) is the most discreet preventive tool in French distressed-business law: it allows a company to negotiate with its main creditors under the supervision of a neutral third party appointed by the president of the court, without interrupting operations or any publicity. We support directors and creditors throughout the procedure, prioritising speed and confidentiality.

→ What we cover

Our scope of intervention.

Preliminary diagnosis

Analysis of the financial situation, identification of strategic creditors, assessment of the amount to be restructured and preparation of negotiation leverage.

Petition to the president of the court

Preparation of the petition to the president of the commercial or civil court, selection of the proposed ad hoc agent (mandataire ad hoc) and definition of their mission.

Negotiation strategy

Preparation of a negotiation plan tailored to each creditor (banks, suppliers, landlord, tax authorities, social security/URSSAF), prioritisation of the agreements to be reached.

Conduct of negotiations

Support during the negotiation sessions held under the supervision of the ad hoc agent, with progressive formalisation of the agreements obtained.

Formalisation of agreements

Drafting of rescheduling protocols, debt waivers, conversions and standstill/moratorium agreements. Coordination with the existing banking documentation.

Exit from the procedure

Closing of the mandate with the agent's report, operational implementation of the agreements and monitoring of compliance with the commitments made.

→ Our approach

A proven methodology.

01

Diagnosis & petition

Confidential analysis of the situation, identification of key creditors, preparation of the petition to the president of the court and selection of the prospective agent.

02

Appointment

Hearing before the president, appointment of the ad hoc agent and definition of their mission (duration, scope of creditors, amount to be restructured).

03

Negotiation

Conduct of negotiations under the supervision of the agent, bilateral and plenary sessions, progressive formalisation of the agreements.

04

Formalisation & execution

Signing of the protocols, closing of the ad hoc mandate, implementation of the agreements and monitoring of each party's compliance with its commitments.

→ Who we help

Typical engagements.

Temporary cash-flow strain

Renegotiation of bank instalments and supplier debts to get through a difficult period, without interrupting operations or alerting business partners.

Renegotiation of LBO debt

Restructuring of acquisition debt that has become unsustainable relative to cash flows: standstills, maturity extension, partial conversion into quasi-equity.

Preparation of a conciliation

Ad hoc mandate used as a preparatory phase for a conciliation, to sound out creditors and prepare an agreement to be subsequently sanctioned.

Renegotiation of a commercial lease

Discreet negotiation with the landlord of a downward rent revision in a context of temporary difficulties, avoiding litigation.

→ Q&A

Frequently asked questions.

As soon as the first signs of difficulty appear: cash-flow strain, loss of a major client, tense negotiation with a bank, an important instalment that cannot be financed. As long as no suspension of payments has been established, the ad hoc mandate remains available. The earlier the intervention, the more effective it is.

Yes: no legal publicity, no mention on the company register (Kbis), only the creditors approached are informed. This is the major advantage of the mechanism. Such confidentiality preserves the trust of other partners (clients, employees) during the negotiation.

From a few weeks to several months depending on complexity. The mission is generally set for 3 to 6 months, renewable. A simple negotiation with one or two creditors may conclude within 6 to 8 weeks; a multi-creditor restructuring generally takes 3 to 6 months.

Yes, entirely: the ad hoc agent is not an insolvency administrator, but plays a facilitator role. The director continues to run the company and to make all decisions. This is what distinguishes the ad hoc mandate from insolvency proceedings proper.

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